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Interpublic Group of Companies Inc
NYSE:IPG

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Interpublic Group of Companies Inc
NYSE:IPG
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Price: 24.57 USD -1.96% Market Closed
Market Cap: $8.9B

P/FCFE

11.1
Current
25%
Cheaper
vs 3-y average of 14.9

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
11.1
=
Market Cap
$9.2B
/
Free Cash Flow to Equity
$828.1m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
11.1
=
Market Cap
$9.2B
/
Free Cash Flow to Equity
$828.1m

Valuation Scenarios

Interpublic Group of Companies Inc is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (14.9), the stock would be worth $32.93 (34% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+156%
Average Upside
73%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 11.1 $24.57
0%
3-Year Average 14.9 $32.93
+34%
5-Year Average 11.6 $25.69
+5%
Industry Average 28.5 $63.01
+156%
Country Average 21.9 $48.4
+97%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
US
Interpublic Group of Companies Inc
NYSE:IPG
9.2B USD 11.1 16.8
US
Omnicom Group Inc
NYSE:OMC
24B USD 8.8 -440.8
FR
Publicis Groupe SA
PAR:PUB
19.9B EUR 7.4 12
UK
Informa PLC
LSE:INF
10.2B GBP 56.6 927.7
CN
Focus Media Information Technology Co Ltd
SZSE:002027
92.7B CNY 13.1 16.9
CN
BlueFocus Intelligent Communications Group Co Ltd
SZSE:300058
62.4B CNY 155.7 273.6
HK
QMMM Holdings Ltd
NASDAQ:QMMM
6.8B USD -1 075.4 -2 306.1
CN
Leo Group Co Ltd
SZSE:002131
44.5B CNY -52.6 89.3
FR
JCDecaux SA
OTC:JCDXF
4.9B USD 78.3 16.1
JP
Dentsu Group Inc
TSE:4324
775.1B JPY -10.6 -2.4
FR
JCDecaux SE
PAR:DEC
4B EUR 74.4 15.3
P/E Multiple
Earnings Growth PEG
US
Interpublic Group of Companies Inc
NYSE:IPG
Average P/E: 171
16.8
21%
0.8
US
Omnicom Group Inc
NYSE:OMC
Negative Multiple: -440.8 N/A N/A
FR
Publicis Groupe SA
PAR:PUB
12
11%
1.1
UK
Informa PLC
LSE:INF
927.7
335%
2.8
CN
F
Focus Media Information Technology Co Ltd
SZSE:002027
16.9
8%
2.1
CN
BlueFocus Intelligent Communications Group Co Ltd
SZSE:300058
273.6
N/A N/A
HK
QMMM Holdings Ltd
NASDAQ:QMMM
Negative Multiple: -2 306.1 N/A N/A
CN
Leo Group Co Ltd
SZSE:002131
89.3
N/A N/A
FR
JCDecaux SA
OTC:JCDXF
16.1
7%
2.3
JP
Dentsu Group Inc
TSE:4324
Negative Multiple: -2.4 N/A N/A
FR
JCDecaux SE
PAR:DEC
15.3
7%
2.2

Market Distribution

Lower than 76% of companies in the United States of America
Percentile
24rd
Based on 7 576 companies
24rd percentile
11.1
Low
0 — 13.1
Typical Range
13.1 — 36.5
High
36.5 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.1
Median 21.9
70th Percentile 36.5
Max 3 188 432.5

Interpublic Group of Companies Inc
Glance View

Interpublic Group of Companies Inc. (IPG) is a giant within the advertising and marketing industry, weaving together a tapestry of creative and strategic communication services that shape how brands are perceived in a global market. Founded in 1961, IPG has evolved into a holding company for some of the most renowned agencies, which include McCann, MullenLowe, and FCB, among others. This means they're not directly crafting the ads you see, but rather providing a structure and resources for their family of agencies to do so. What sets IPG apart is its holistic approach to brand-building, offering services that span traditional advertising, digital marketing, public relations, media management, and even experiential marketing. Each of these components works synergistically to create a cohesive narrative for clients, ensuring marketing messages are not only seen but also resonate with targeted audiences. Financially, IPG thrives by charging its clients for the variety of services offered by its agencies. This often takes the form of commissions, fees, or a combination of both, depending on the complexity and scope of the featured campaigns. IPG’s success is further bolstered by its investment in digital transformation and data-driven strategies, areas that continue to see significant growth with the rise of technology. By staying at the forefront of communication trends and anticipating client needs, IPG ensures its bottom line stays robust. Moreover, its global reach allows it to tap into diverse markets, leveraging insights from different cultures and consumer behaviors to craft bespoke marketing solutions. Thus, IPG doesn't just create advertisements; it engineers strategic brand experiences designed to cultivate lasting consumer relationships and drive client growth.

IPG Intrinsic Value
41.69 USD
Undervaluation 41%
Intrinsic Value
Price $24.57
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